The Greek parliament has approved a bond swap that would wipe 107 billion euros ($142 billion) off the country's privately held debt.

Greece is now expected to issue the formal bond offer, under which private creditors will be called on to exchange their Greek government bonds with new ones with a 53.5 percent lower face value, longer maturities, and lower interest rates.

The write-down to be imposed on banks, pension funds, and other private holders of Greek government bonds was agreed upon this week by finance ministers from the 17-member eurozone.

The bond swap is an integral part of a new bailout for Greece, worth 130 billion euros ($172 billion), without which the country faces bankruptcy in April.